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Advertising

Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Advertiser includes not only business firms but also museums, charitable organization and government agencies that direct message to target public. It is most effective way to disseminate messages whether to build brand preference for a product or to educate people about specific disease like AIDS.
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Contd..
Modern ad spending tops $231 billion in U.S. annually, $500 billion worldwide. Business firms, social agencies, and professionals all advertise.

Major STEPS in Advertising Management


Message decision
Message generation Message evaluation and selection Message execution
Objectives setting
Communication Objectives Sales Objectives

Budget decisions
Affordable approach Percent of sales Competitive parity Objectives and task

Advertising evaluation Communication impact Sales impact

Media decision
Reach, frequency, impact Major media types Specific media vehicles Media timing

Advertising
Key Decisions
Setting objectives Setting the budget Developing the advertising strategy Evaluating advertising campaigns
Advertising objectives can be classified by primary purpose:
Inform
Introducing new products

Persuade
Becomes more important as competition increases Comparative advertising

Remind
Most important for mature products

Possible Advertising Objectives


To inform :
-Telling the market about a new product - Suggesting new uses for a product - Informing the market of a price change -Explaining how the product works -Describe available service -Correcting false impression -Reducing consumers fears -Building a company image

To persuade :
Building brand preference -Changing customers perception of product attributes -Persuading customer to purchase now

To remind
Reminding consumers that the product may be needed in the near future -Reminding them where to buy it -Keeping it in their minds during off seasons -Maintaining its top-of-mind awareness
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Advertising
Key Decisions
Setting objectives Setting the budget Developing the advertising strategy Evaluating advertising campaigns
Several factors should be considered when setting the ad budget:
Stage in the PLC Market share Level of competition Ad clutter Degree of brand differentiation

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Factors to be considered when setting advertising budgets are: Stage in product life cycle: 1- if the product is new to the market then the expenditure should be high in advertisement to create awareness to the people. 2-If the product is already established then lower advertisement expenditure should be done in ratio to the sales. market share and consumer base: 1-high market share brands usually require less advertising expenditure as a percentage of sales to maintain share. 2-To build share by increasing market size requires larger expenditure. 11

competition and clutter: In a market of large number of competitors and high advertising spending, a brand must advertise more heavily to be heard. product substutability: Brands in a commodity class (cigarettes, beers, soft drinks) requires heavy advertising to establish a different image. advertising frequency: Directly proportional to advertising budget.
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Step-3-Choosing the advertising message


This is one of the most important factors that what message advertiser wants to deliver to consumer. Steps involved in generating the advertising message are:--message generation ,message evaluation and selection, message execution , social responsibility review
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there are different ways of creating creative messages to the customers like: Linking the brand directly to a single benefit e.g.HONDA generators Developing narrative story with a problem, episode related to problem and outcome. E.g. hair dye, weigh loose Some creative people use deductive frame work for generating advertising frame work.according to this the buyers expect one of the four rewards from the product. E.g. rational: surf ki kharidari mein samajhdaari Sensory: automobile is driving at the mountain at speed of 90mile/hr. Social: santro:parosee santro wale hain Ego satisfaction: Reid and tailor bond with the best Manikchand unche log unchee pasand
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Dramatic before and after Pictures

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b) message evaluation and selection:


the advertiser should conduct market researcher to determine which appeal works best with its target audience. Once advertiser develops different message to be delivered to customer , he should evaluate different message and select the best one which can influence the target population
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Turn on Your Bodys Fat Burning Process

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Message Execution
the messages impact not only depends on what is said but how it is said is also very important. Some ads aims rational positioning and other for emotional positioning. e.g. lalita manrai created two ads for same car.the headline for the first car was :a new car and advertising explaining features was of this new car . Other cars headline was car for you and the advertising messages was the benefits whatn you can get by this car. The result shown that second car out performed.the first in term of overall product impression.reader interest in buying the product and recommending it to the friend. Format elements such as ad size, color and illustration affects the impact of message.
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d) social responsibility
advertiser and their agencies must be sure their creative advertising does not overstep social and legal norms. Marketer and advertiser should not claim any false statement to deceive the customer.

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KAUSHAL KUMAR PATHAK

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Thanks

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STEP-4 Deciding on media: Media selection is finding the most cost effective media to deliver the desired number and type of exposure to the target audience. This is the next task of advertiser after choosing the message. The step should be taken to decide the media are: a)deciding on reach, frequency and impact. b)selecting specific media vehicles. c)deciding on media timing d)deciding on geographical media allocation
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A. Deciding on reach, frequency and impact reach:-- the number of different persons or households exposed to particular media schedule at least once during specified time period. Reach is most important when:-launching new product extention of well known brand infrequently purchase brand going behind undefined target market
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frequency:
it indicates number of times within the specific time period that an average person or household is exposed to the message . frequency is most important where: - there is strong competitor of product - a high consumer resistance -a complex story to say -frequent purchase cycle like cold drinks
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impact:
it is qualitative value of an exposure through the given media. It denotes the customer perceived value for the product when the advertisaement is done through different marketing media. E.g. when the advertisement is done Example- in launchoing new biscuit pilsbury decide to allocate television-3 ml. to women magazine 2 ml and 1ml to daily newspaper in 20 major market and 50000 to maintaining home page on internet.
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Advertising
Major Media Types
Newspapers Television Direct Mail Internet
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Radio Magazines Outdoor

Selecting specific vehicle While deciding the vehicle, not only the audience is to be determined rather effective ad-exposed audience required. Audience-number of people exposed to vehicle. Effective audience-no. of people with target audience characteristic exposed to vehicle. Eg, for a body lotion ad, a magazine read by 1 million young mothers would have an exposure value of 1 million. If read by 1 ml old men it will have almost zero exposure value
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Effective ad-exposed audienceThe number of people with target audience characteristic who actually saw the ad. So the advertisement should be adjusted so that it can draw the attention of the target population. Readers of vogue pay more attention to ads than do readers of newsweek.

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Deciding on media timing Ad should decide on macroscheduling and microscheduling during problem in relation to advertising. Macroscheduling- it is scheduling the advertising in relation to season and business cycle. Suppose 70% of the product sale occur between june and September. Then most of the firm follow seasonal pattern for ad expenditure. To oppose seasonal pattern or constant through out the year softdrink manufacturer put more money into off season ad. It resulted in non seasonal consumption . In launching a new product . the ad has to choose among ad continuity,concentration and flighting and pulsing. 39

CONTINUITY:-is achieved by scheduling exposure evenly throughout the given period. It should be followed in expanding market situation, frequently purchased item or tightly defined buyer categories. Concentration:--calls for spending all the advertising budget in a single period.this makes sense for products with one selling season or holiday. FLighting:--calls for advertising for some period followd by hiatus for no advertising. Followed by second period of advertising activity. Deciding for geographical allocation The company have to decide whether the company makes national buy or spot buy. When it wants national buy then it should place ads on national t.v. or nationally circulated magazines. When the company makes spot buys then it should ad in regional t.v. program or regional editions of magazines.

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STEP 5; EVALUATION OF ADVERTISING EFFECTIVENESS It takes only few percentage (0.2%) of total advertising expenditure but gives a clue that whether the direction of advertising expenditure is right or wrong. Most advertiser try to measure the communication effect of an ad i.e. its potential effect on awareness, knowledge or preference. They would also like to measure the ads sales effect. COMMUNICATION EFFECT REACHERS Communication effect reachers seeks to determine whether an ad is communicating effectively; called copy testing.it can be done before an ad is put into media and after it is printed or broadcast. There are 3 methods of advertising pre testing: consumer feed backasks consumers for their reaction on a proposed ad. They respond to such question

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--what is the main messge you get from this ad? --what do you think they want you to know , believe or do? --how likely is that this ad will influence you to undertake the implied action? --what works well in the ad and what works poorly? --how does the ad make you feel? B) portfolio teststhese tests asks consumer to view or listen to a portfolio or advertisement taking as much time as they need. Consumers are then asked to recall the ads and their content aided or unaided by the interviewer.recall level indicates an ads ability to stand out and to have its message understood and remembered. C)laboratory testsuse equipment to measure physiological reactions- heart beat, blood pressure, pupil dialation, galvanic skin response, perspiration-to an ad.
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SALES-EFFECT RESEARCH To measure the exact extent of influence of advertisement on sales is very difficult because the sale may increase due to several other reason like decrease in price of the product. increase in quantity at the same price. increase in quality and services of product.. .competitors unsuccess in proper advertising. competitors poor market policy. increase in price of supplementary product. decrease in price of complementory product. increasing market interest towards product type. seasonal effect on product sales. But the companies are interested in finding out weither are they are overspending or understanding on advertisement.

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SHARE OF EXPENDITURE SHARE OF VOICE SHARE OF MIND AND HEART SHARE OF MARKET

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SHARE OF EXPENDITURE
SHARE OF VOICE Percentage of company advertising of that product to all the advertising of tht product. J.O.Peckhame relationship betweenstudied then share of voice and share of market for several consumer products over number of years and found 1:1 ratio for established products and 1.52.0:1.0 ratio for new product.
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